Compiled 02/17/12 6:00 AM (CT) Statistics: London Gold Fix $1,732.00 +$19.00 LME Copper Stocks 306,375 tons -4,750 Shanghai Deliverable stocks were 217,142 tons +18,940 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Gold bulls might be coming into today somewhat disappointed that the market did follow yesterday's bounce off of early lows with a breakout to the upside, despite a generally upbeat economic outlook and stronger equity market action. There is guarded hope today that Greece has managed to put together enough budget cuts to satisfy EU demands and to start the next debt swap on Monday, but there is skepticism as well, as we have been down this road before. These days, positive economic data is encouraging a risk on attitude, which is supportive to equities and commodities, including the precious metals. There seem to be several stories going around today about the longer term inflationary effects of all the loose money, with Bank of Japan, Bank of England, US Fed and others maintaining a loose policy, which is longer-term supportive to gold. But the trade will be looking for more immediate evidence that inflation is building, and a big item to watch this morning will be CPI. Wednesday's PPI number showed a modest increase in the core number, but the headline number was mostly flat, and this may have kept the lid on the market yesterday. If CPI comes up short of expectations today, gold may have a difficult time following thru on yesterday's bounce. Overnight it was reported that 4th quarter 2011 gold jewelry demand fell 15% year on year to 476.5 tons, and total demand for 2011 fell 3% to 1,962.9 tons. India and China represented 55% of total world demand. Comex Gold Stocks were 11.432 million ounces down 3,020. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were generally higher overnight, mainly in reaction to the late rebound in yesterday's US equity markets. European equity markets have been able to maintain that positive tone this morning as increased market optimism that Greece will avoid a disorderly sovereign debt default is helping to underpin prices at these levels. While a strong German PPI number earlier today helped to reinforce early gains, the resignation of the German President has injected some uncertainty into the markets. Early US stock market action has been close to unchanged levels, with prices holding just below the recent highs. In looking forward to US trading today, the market will see a reading on US CPI as well as a private survey of Leading Indicators later on in the session.